Open an e-commerce site: what you need to know?

Online sales through IT systems or IT platforms commonly called marketplaces or e-commerce are now a reality with exponential growth numbers.

We have always said that it is the future of sales and commercial relationships both in terms of B2B (Business to Business, i.e. commercial relationships between companies) and in terms of B2C (Business to Consumer, i.e. between seller and final consumer).

We have always paid attention to the legal obligations on the matter but considering the even convulsive and annoyingly messy development of the marketplace market, the legislator continuously sets regulatory stakes that regulate this kind of activity often to regulate but sometimes not always in a linear and correct way in our opinion. But the law is the law and does not admit ignorance and therefore it is necessary to make a virtue of necessity and follow the directives of the legislator, be it national or European or in this specific case both.

It is true that although there are not always funding and incentives to open an e-commerce site (not entirely true, ask us for guidance on the subject, we know how) Italian companies, remaining in Italy, continue to invest even considerable sums to open your own online store. Unfortunately and we must underline this, often with great economic setbacks and failures due to a widespread belief that what is online works and does not require funding in terms of communication and marketing. But often also because the defects of the average entrepreneur, more often the craftsman, are poured into the company's digitization process and the same dynamics then have repercussions on the success or failure of the digital process, but this is another matter.

However, what is certain is that e-commerce is not a game, it is not even something that can be tackled with one hand and least of all one can act recklessly, not anymore, today. Today there are rules, these rules must be respected and are complex. 90% of the e-commerce sites that we have analyzed are out of the norm and sooner or later, even now in reality, the legislator will start calling online sellers to order and it will be painful (they already are).

We open an online sales shop. What do we have to do?

Given that opening an online store has the same dynamics and needs as a physical store, from a fiscal point of view, because that's the topic we want to deal with here things are slightly different (not so much actually). There are two procedures depending on whether you want to open a business from scratch dedicated to online sales or if you already have a VAT number and/or a company and want to open a business branch dedicated to the online sale of your products and/or services.

Opening a company from scratch

Well, here things are quite linear and well known by those who have already had the opportunity to open a VAT number. Therefore I will not dwell on all the points because it is a matter of competence of an accountant. Suffice it to say that the important points are these:

Opening a VAT number
Certified report of start of activity (Scia), indicating the product sector of sale and the attestation of possession of the moral and professional requisites, to be deposited at the One-stop shop for manufacturing activities (Suap) of the tax municipality to which it belongs;
Registration in the commercial register;
Social security obligations (INPS) to obligations of an insurance nature (Inail).
Enrollment in the Albi etc ...
Request toRevenue Agency the attribution of Atecofin code 47.91.10, which identifies the "Trade to the detail of any type of products effected road internet” and, in the same form, specify the reference Internet service provider (ISP), an e-mail address, telephone numbers and the URL dedicated to online sales, classified as its if the sale takes place on a website owned, or classified as host if the sale takes place on marketplaces such as Amazon or eBay.
In the event that e-commerce should also address countries beyond the border of the European Union (and the opposite would not make sense) it is necessary to register with the Vat information exchange system (Vies). However, we point out that the request for registration in the Vies database can take place at the same time as the request for attribution of the VAT number, indicating the details of the hypothetical turnover in the intra-community market.

Note to my colleagues and web agencies: it is the responsibility of the web agency to verify that all the above practices have been duly completed. The seller must make available to the Webagency the documentation presented to the competent authorities otherwise the agency can be jointly and severally liable for fraud and/or administrative sanctions that may be inflicted in the event of non-regularization of the seller's position vis-à-vis the tax authorities and the authorities competent. Basically, a simple declaration by the seller to the agency is not enough but the declaration must be detailed and demonstrate that the agency has done everything to inform the seller about the legal obligations. And on this we would have to open a separate chapter!

Opening of a branch of the company

Here the process is substantially less complex but in any case the steps are as follows:

Notify the Chamber of Commerce of the further mail order retail activity and present the Scia.
Request toRevenue Agency the attribution of Atecofin code 47.91.10, which identifies the "Trade to the detail of any type of products effected road internet” and, in the same form, specify the reference Internet service provider (ISP), an e-mail address, telephone numbers and the URL dedicated to online sales, classified as its if the sale takes place on a website owned, or classified as host if the sale takes place on marketplaces such as Amazon or eBay.
In the event that e-commerce should also address countries beyond the border of the European Union (and the opposite would not make sense) it is necessary to register with the Vat information exchange system (Vies). However, we point out that the request for registration in the Vies database can take place at the same time as the request for attribution of the VAT number, indicating the details of the hypothetical turnover in the intra-community market.

Okay. So far so good. But then? Which standards should we refer to? What still needs to be considered? After the ecommerce site is in the starting blocks, what happens?

Step to remember! Payroll register!

It is necessary to keep a register of the considerations where the DAILY receipts must be marked

Publication obligations.

Company data must be published on the e-commerce site, such as:

Business name
Physical address of the business and, if applicable, registered office and operational headquarters if they are different addresses
Number and date of registration in the Company Register
VAT number
Email address
Phone
PEC
In the case of joint stock companies, the share capital and how much of this has been paid up
In the case of joint stock companies with sole shareholder or SRL Unipersonale, the name of the shareholder and his VAT number
Link to the Privacy Policy
Link to the Cookie Policy
Link to the terms of use of the e-commerce site
Link to conditions of sale
Information banner on the use of tracking systems and Cookies in compliance with the new regulations on the user's right to delete any personal information from the site, if and when requested.

What standards must an e-commerce site refer to?

And here things get complicated. There are several standards to refer to, both national and European. The rules range from the Civil Code to European and national sensitive data management regulation systems (GDPR), to tax and administrative rules up to the codes of conduct of professional registers if the online activity requires registration in specific registers and so on . What needs to be emphasized is that ignorance of these points is not only dangerous but puts everyone involved in the online selling business at risk. Sense of responsibility, clarity, correctness and above all analysis in the planning phase are essential points for the success of an e-commerce. The law does not allow ignorance and transgressors today are indeed severely punished.

With this we don't want to say that you shouldn't "jump in" and that e-commerce is dangerous in itself, on the contrary! Let's just say that getting informed first and applying the knowledge gathered is always a healthy and right thing both in the short, medium and long term.

Here is the entire regulatory system that you need to know to be in order in all respects.

Legislative Decree n.70 of 9 April 2003
In implementing the European directive 2000/31/EC, the legislative decree wanted to frame and take into account the possibility of starting an e-commerce business without the necessary authorizations mentioned above, however considering the necessary professional requirements for specific activities because it is true that distance or online selling can be professional or occasional. Occasional selling means a commercial activity not carried out regularly but occasionally, which does not require the creation of a dedicated e-commerce site and which does not require the publication of a catalogue.
Legislative Decree n.21 of 21 February 2014
Legislative Decree No. 21 of February 21, 2014, in transposing European Directive 2011/83/EU, made important changes to the Consumer Code (Legislative Decree No. 206 of September 6, 2005). The Consumer Code is a very complex text for the e-commerce sector, also due to the continuous modifications and additions to which it has been subject in recent years. The updated rules give the consumer greater protection with regard to:
a) The right of withdrawal and the right of withdrawal
The right of withdrawal can be exercised within a longer period, ranging from 10 to 14 days from receipt of the goods. The right to rethink, on the other hand, gives the consumer the possibility to return the goods even if partially deteriorated, as they are only responsible for the decrease in the value of the goods in custody.
b) Consumer rights
The seller is responsible for any lack of conformity existing at the time of delivery of the product and will have to take care of the restoration, without charge, of the conformity of the product by repair or replacement; the appropriate reduction of the price; of the contractual termination if the repair, replacement or discounts are not practicable.
c) Telephone sales
Sales cashed in by telephone require confirmation by the buyer in paper form or by e-mail and not just with the simple telephone consent.
d) Transparency of expenses
The seller is required to maintain maximum transparency regarding all possible expenses that the consumer could incur in the event of returning the products. Furthermore, the seller may not impose higher costs on the consumer for payments made by credit card or debit card. This point highlights how the seller has mandatory information obligations towards the consumer, also on the delivery of goods and on shipping costs.
The Consumer Code also regulates all unfair, deceptive and aggressive commercial practices.
European regulation on the protection of personal data
Starting from 25 May 2018, the General data protection regulation (Gdpr), i.e. the legislation that will regulate European legislation on privacy and personal data protection, will be applied. The new regulation will impact all types of businesses, large and small, and it won't just affect e-commerce, even as the sector makes it easier to sell globally. The GDPR imposes an obligation on the company to protect personal data and to ensure that customers exercise their rights in this regard. Be aware that this has value whether you have a website or an e-commerce site.
European regulation n.524/2013
The European Regulation n.524 of 2013 introduced an online dispute resolution system, national and international, concerning all sales contracts stipulated between professional sellers and consumers. E-commerce has the obligation to give maximum visibility to this procedure, quoting the regulation, in its conditions of sale.

It is clear that this is meant to be only a schematic smattering of a whole complex regulatory system that is involved if we decide to open an online sales business. Each point listed here should be explored and different professionals, tax consultants, accountants and lawyers would be involved. The code that interprets and regulates consumer law alone is already a decidedly complex matter but it cannot and must not be ignored, on the contrary.

Finally, it is necessary to point out an important aspect, this year ends on geoblocking in the European Union following the approved European regulation which prohibits this practice within the borders of the EU. Basically, today it is possible to shop online on e-commerce sites in other EU countries while maintaining the protections, conditions and guarantees present in one's own country, thus safeguarding the place where the buyer and not the seller resides.

Open an e-commerce site: what you need to know?